The marginal propensity to consume is a measure of the additional consumption that results from a one-dollar increase in disposable income
a. True
b. False
Indicate whether the statement is true or false
True
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The instructions and rules for the alternative minimum tax are generally
A. far easier to understand than the instruction and rules for the 1040. B. no more or less difficult to understand than the instructions and rules for the 1040. C. far easier to understand than the instruction and rules for the 1040EZ. D. much more complicated than the instructions and rules for the 1040.
The natural unemployment rate and the expected inflation rate are constant when moving along the ________, which shows a tradeoff between ________ and ________
A) short-run Phillips curve; inflation; employment B) long-run Phillips curve; inflation; unemployment C) aggregate demand curve; inflation; employment D) aggregate supply curve; inflation; unemployment E) short-run Phillips curve; inflation; unemployment
In the case of public goods, _____
a. the free rider problem does not arise b. one person's consumption of the good reduces the consumption of the good by others c. individuals can be easily excluded from consuming the good once it is provided d. the quantity produced by a private market would be too large from society's viewpoint e. the principle of mutual excludability and principle of rivalry do not apply
The Capital Asset Pricing Model determines the weighted average cost of capital
Indicate whether the statement is true or false